Builders might be busier, but the homes they’re planning are less expensive.
That’s the tale of the tape for March as developers requested 89 residential construction permits – more than twice the number from a year ago, the Home Builders Association of Fort Wayne reported Thursday.
The average home cost, however, is $163,207, which is more than $12,000 less than a year ago.
Indiana Builders Association CEO Rick Wajda said the “boost in permits” is attributable to first-time homebuyers taking advantage of the $8,000 federal tax credit.
Federal officials estimate that more than 39,000 people have collected $269.1 million in first-time-homebuyer credits in Indiana.
“That’s where a lot of it is coming from,” Wajda said of the incentive program that concludes at month’s end.
“The home prices are pretty consistent with what we’ve seen across the state and the country as well. We hear from builders that the low-end market is the only thing moving right now.”
A proposed Perry Township subdivision also is going the frugal route.
Lancia Homes’ The Coves at Brooks Crossing is a 69-lot subdivision south of Carroll Road. Modest ranch and two-story single-family homes, ranging from $120,000 to $175,000, will be built on the more than 19-acre site.
Michael Moellering, an attorney for Lancia, last month told the Allen County Plan Commission that cost-conscious consumers are opting for more modest homes because of the economy.
Officials at Lancia believe their development is more feasible and has a better chance at drawing buyers than costly luxury homes, Moellering has said.
Plan commission members approved the project March 18.
Wajda, meantime, said 2009 was such a horrendous year for builders that an increased number of permits is welcome.
“From 2000 to 2005 we averaged about 30,000 to 33,000 building permits statewide,” he said.
“We were nowhere near that last year. We had about 10,000 permits in Indiana.”
